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Resolution Minerals (ASX:RML) signs on Oz Minerals (ASX:OZL) to advance Benmara project

ASX News, Mining
ASX:RML      MCAP $4.83M
13 May 2022 13:52 (AEST)

The Benmara project station track in 2021. Source: Resolution Minerals

Resolution Minerals (RML) has executed a farm in joint venture agreement with Oz Minerals (OZL) to fast track copper exploration at its Benmara project in the NT.

The project is located in the South Nicholson Basin, along strike from Resolution’s Walford Creek silver, lead, zinc and copper project.

The parties are already working together at the NT-based Wollogorang project through an agreement formed in August 2021.

Through the new agreement, Oz Minerals will be able to earn a 51 per cent interest in Benmara by spending $4 million on exploration over five years.

If OZL manages to secure the 51 per cent, the joint venture agreement will be formalised.

Resolution will retain its 49 per cent interest by electing to participate, otherwise OZL can earn a 75 per cent interest by spending a minimum of $1 million over an additional five years to produce a positive final investment decision to mine.

Over 2021, RML completed a reverse circulation program and airborne geophysical surveys which identified large scale untested conductors and thick packages of shale units up to 200 metres thick.

Resolution’s CEO Christine Lawley said the JV agreement with OZ Minerals is validation of the company’s exploration strategy during its 2021 field season.

“These results proved the Benmara Project has a geological setting equivalent to other regional deposits such as the McArthur River Mine, Walford Creek and the Century Mine,” she said.

While gearing up for drilling at RML’s flagship project in Alaska, the CEO said the development should excite shareholders as the agreement enables the company to advance three major projects simultaneously, with both Wollogorang and Benmara having external funding from OZL.

Resolution Minerals was up 15.4 per cent and trading at 1.5 cents while Oz Minerals was down 0.44 per cent and trading at $21.39 at 1:51 pm AEST.

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